Brazil's stocks crept higher on Friday as a slump in financial shares was partially offset by gains in commodity companies Vale and Petrobras, while the local currency gained sharply as appetite for emerging market assets grew. The benchmark Bovespa index of the Sao Paulo stock exchange rose 0.49 percent to 39,341.54 points, after surging 3.1 percent on Thursday.
Shares of Itau, Brazil's second largest private sector bank, led banking stocks lower as concerns about US financial firms weighed on the entire sector. A surge of around 5 percent in copper prices earlier helped lift shares of mining company Vale, while energy giant Petrobras firmed as investors snapped up liquid Brazilian stocks.
At the stock market, Vale gained 0.76 percent 26.60 reais, while Petrobras rose 0.75 percent to 24.28 reais. Brazilian steelmakers also gained, with CSN up 2.45 percent to 35.50 reais and Usiminas gaining 3.06 percent to 29.94 reais.
Itau tumbled 3.43 percent to 23.95 reais and Banco do Brasil closed 4 percent lower at 14.40 reais as investors sold off financial stocks around the world. Unibanco lost 2.38 percent to 13.55 reais, while Bradesco dipped 2.08 percent to 21.20 reais.
Brazil's currency, the real, strengthened 1.8 percent to 2.344 per dollar after tumbling 4.8 percent over the previous four sessions as investors sold off the US currency around the globe. The greenback traded 0.59 percent lower against a basket of major currencies.
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